Industrial policy, politics and state capacity building

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2010

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University of Cape Town

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Abstract
In! this! note! on! stimulating! a! discussion! around! building! state! capacity,! I! try! to! raise! a! number! of! questions/issues! derived! from! my! own! experiences! around! both! industrial! policy!and! the!politics!of!growth! that!impact!on! the!ability! to! translate!industrial!policy! into!implementable!strategy.!This!is!a!discussion!which!pivots!around!the!alignments!and! conflicts!of!interests!within!the!state, as!well!as!between!state,!private!sector,!and!unions.! The! politics! of! growth! is! wider! than! the! issue! of! how! industrial! policy! is designed.!However!we!often!engage!in!the!discussion!as!if!it!was!simply!a!question!of!policy,!leaving! out!a!crucial!political!component!of!the!equation!–!i.e.!the!manner!in!which!politics!plays! itself!out!within!the!domain!of!the!formulation!of!policy!and!its!translation!into!strategy.
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